Universal Display (OLED) AI Stock Analysis

• Market Cap: $6.75B
• Dividend Yield: 1.23%
• Average Volume (3M): 672.45K
• Price to Earnings (P/E): 27.7
• Beta (1Y): 1.61
• Revenue Growth: 6.23%
• EPS Growth: 10.12%
• Country: US
• Employees: 468
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 1.41
• Shares Outstanding: 47,534,172
• 10 Day Avg. Volume: 1,035,545
• 30 Day Avg. Volume: 672,454
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 10.36
• Enterprise Value/Gross Profit: 13.41
• Enterprise Value/Ebitda: 22.71
• 1Y Price Target: $187.00
• Price Target Upside: 31.68% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 77 Outperform
• Price Target: $159.00 ▲(11.96% Upside)

Universal Display's strong financial performance and positive earnings call sentiment are the primary drivers of its stock score. Despite some technical weaknesses and moderate valuation, the company's robust market position and growth potential in the OLED sector contribute to a favorable outlook.

Positive Factors

Strong Financial Position

A robust cash position enhances financial flexibility, allowing for strategic investments and cushioning against economic downturns, supporting long-term stability.

OLED Market Growth

The expanding OLED market offers significant growth opportunities, positioning Universal Display to capitalize on increasing demand in consumer electronics and automotive sectors.

Innovations and R&D Achievements

Continued innovation and R&D in OLED technology enhance product offerings and competitive positioning, driving long-term growth and market leadership.

Negative Factors

Decline in Material Sales

A decline in material sales indicates potential challenges in maintaining revenue growth, which could impact profitability if not addressed.

Macroeconomic Uncertainty

Macroeconomic uncertainty poses risks to future performance, potentially affecting demand and financial results, necessitating cautious strategic planning.

Free Cash Flow Decline

A decline in free cash flow growth may limit the company's ability to invest in new opportunities and manage debt, impacting long-term financial health.

Universal Display Business Overview & Revenue Model

Company Description

Universal Display Corporation engages in the research, development, and commercialization of organic light emitting diode (OLED) technologies and materials for use in display and solid-state lighting applications. It owns, exclusively licenses, or has sole rights to sublicense approximately 5,500 issued and pending patents worldwide. The company supplies its proprietary UniversalPHOLED materials to display and lighting manufacturers, and others. It is also involved in the research, development, and commercialization of other OLED device and manufacturing technologies, including FOLED that are flexible OLEDs for the fabrication of OLEDs on flexible substrates; OVJP, an organic vapor jet printing technology; thin-film encapsulation technology for the packaging of flexible OLEDs and other thin-film devices, as well as for use as a barrier film for plastic substrates; and UniversalP2OLED, which are printable phosphorescent OLEDs. In addition, the company provides technology development and support services, including third-party collaboration and support to third parties for the commercialization of their OLED products. Further, it provides contract research services in the areas of chemical materials synthesis research, development, and commercialization for non-OLED applications. Universal Display Corporation was founded in 1985 and is headquartered in Ewing, New Jersey.

How the Company Makes Money

Universal Display generates revenue primarily through the sale of its proprietary OLED materials and technologies to manufacturers of display panels and lighting products. The company's revenue model is based on licensing agreements, where it licenses its patented technologies and materials to various industry partners, including major electronics firms. Additionally, UDC earns income from the sale of its phosphorescent OLED materials, which are critical for producing high-quality displays. The company's partnerships with leading display manufacturers, such as Samsung and LG, significantly contribute to its earnings, as these companies rely on UDC's advanced materials to create competitive OLED products in the marketplace.

Universal Display Financial Statement Overview

Summary

Universal Display demonstrates strong financial health with high profitability, low leverage, and effective cash management. While revenue growth is stable, the decline in free cash flow growth and slight margin pressures warrant monitoring. Overall, the company is well-positioned in the semiconductor industry with a solid financial foundation.

Income Statement

Universal Display shows strong profitability with a high gross profit margin of 76.55% and a net profit margin of 36.94% in TTM. Revenue growth is modest at 2.05% TTM, indicating stable growth. EBIT and EBITDA margins are robust, reflecting efficient operations. However, the slight decline in gross profit margin over the years suggests potential cost pressures.

Balance Sheet

The company maintains a very low debt-to-equity ratio of 0.01, indicating minimal leverage and strong financial stability. Return on Equity (ROE) is healthy at 14.87%, showcasing effective use of equity. The equity ratio is strong, suggesting a solid financial foundation with significant equity backing its assets.

Cash Flow

Operating cash flow to net income ratio is strong at 1.57, indicating good cash generation relative to earnings. However, free cash flow growth has declined by 12.48% TTM, which could be a concern if it continues. The free cash flow to net income ratio remains solid at 0.73, suggesting effective cash management despite recent declines.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	661.99M	647.68M	576.43M	616.62M	553.52M	428.87M
Gross Profit	511.49M	499.22M	441.05M	488.72M	438.53M	343.39M
EBITDA	302.14M	282.94M	260.59M	309.38M	269.61M	194.71M
Net Income	244.52M	222.08M	203.01M	210.06M	184.21M	133.37M
Balance Sheet
Total Assets	1.93B	1.83B	1.67B	1.53B	1.47B	1.27B
Cash, Cash Equivalents and Short-Term Investments	525.21M	492.67M	514.12M	577.77M	663.19M	730.01M
Total Debt	17.79M	19.14M	22.86M	29.04M	27.26M	6.88M
Total Liabilities	217.09M	215.81M	221.74M	257.45M	367.00M	356.51M
Stockholders Equity	1.71B	1.62B	1.45B	1.28B	1.10B	912.71M
Cash Flow
Free Cash Flow	143.23M	211.10M	28.42M	79.61M	147.55M	120.74M
Operating Cash Flow	197.07M	253.74M	154.78M	126.81M	191.10M	148.79M
Investing Cash Flow	-105.43M	-164.41M	-83.29M	-280.74M	-457.75M	391.26M
Financing Cash Flow	-88.69M	-82.33M	-72.93M	-64.64M	-51.37M	-41.66M

Universal Display Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 142.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OLED, the sentiment is Positive. The current price of 142.01 is above the 20-day moving average (MA) of 139.95, below the 50-day MA of 143.08, and below the 200-day MA of 145.04, indicating a neutral trend. The MACD of -1.24 indicates Negative momentum. The RSI at 53.10 is Neutral, neither overbought nor oversold. The STOCH value of 46.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OLED.

Universal Display Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OLED	77 Outperform	$6.75B	27.72	15.07%	1.23%	6.23%	10.12%
RMBS	76 Outperform	11.01B	48.44	18.66%	―	35.17%	0.10%
LSCC	75 Outperform	9.88B	315.02	4.61%	―	-22.15%	-83.34%
SMTC	65 Neutral	5.28B	257.81	4.30%	―	22.22%	0.00%
POWI	55 Neutral	2.41B	72.93	0.00%	1.96%	7.16%	-21.24%
ALGM	55 Neutral	5.82B	-85.62	-7.43%	―	-18.82%	-195.20%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Universal Display Corporate Events

Universal Display Holds 2025 Annual Meeting on June 18

Universal Display held its 2025 Annual Meeting on June 18, 2025, where 42,727,869 votes were represented. During the meeting, the election of directors, approval of executive compensation, and ratification of KPMG LLP as the independent accounting firm for 2025 were voted upon. The election of directors saw varying levels of support for each candidate, while the advisory resolution on executive compensation received significant approval. The ratification of KPMG LLP was also largely supported.